Australian ag-tech company Roto-Gro International (AX:RGI) is poised to capitalise on a critical supply shortage plaguing the Canadian cannabis market after its Lawful Cannabis License was converted to the new Cannabis Act.
The Company is uniquely positioned in the Canadian $4.34 billion domestic lawful cannabis market after testing demonstrated that its patented hydroponic growing technology consistently yields 400% more product per square metre than traditional growing methods.
Since becoming the second country in the world to legalise recreational marijuana use in October 2018, Canada has experienced a shortage of product at the retail level due to a number of market factors including delays in the processing and approval of licences.
RotoGro’s Adam Clode said that while the Licence acquisition is a significant development for the Company, RotoGro’s competitive advantage is in the yields produced by its market-leading technology.
“The opportunity to fill a major gap in the Canadian market is clear. We are in a strong position given the cannabis shortages, particularly as we’re producing greater yields at a lower cost base,” Mr Clode said.
“The RotoGro Hydroponic Garden provides a 400% increase in yield per Rotational Garden as compared to indoor hydroponic flat deck growing - at a lower operating cost. This places RotoGro in the lowest quartile of production costs for the cultivation of lawful cannabis.
“The results of substantial testing have proven to be extremely promising with each four-foot RotoGro Hydroponic Garden consistently yielding 3-4kg of product per sixty-day cycle.
“This is significant when compared to third party independent studies that have shown the comparative yield of a traditional indoor ‘flat deck system’ occupying the same footprint of three-square metres is on average 1.3kg per harvest.”
The Company expects to produce between 10 to 15,000 kilograms per annum at a planned 4,500 square metre facility – with completion expected in Q4 2019.
Mr Clode said that the cutting-edge RotoGro Hydroponic Systems technology is also capable of delivering several additional benefits that underscored its value as a long-term farming solution across all agricultural sectors.
“Our system uses 60% less power and 90% less water than conventional indoor farming systems, which further adds to the value proposition especially in areas of global food shortages and harsh climatic conditions not suited for agriculture crops.
“While Canada is a great first step, we have a unique opportunity more broadly. We’re a global company who can yield consistent organic product year-round, unrestricted by seasonal elements that affect traditional farming.”
Mr Clode said that RotoGro was already pursuing major opportunities in the fresh produce sector, both in Australia and abroad.
“Continual research and development at our state-of-the-art facility provides a strong foundation for supporting a wide range of our clients’ needs,” Mr Clode said.
“We employ two qualified plant scientists to lead our scientific analysis and study of different plants and strains in both the lawful cannabis and perishable foods space.
“The future is very exciting as we continually improve and refine our technology in conjunction with our global data control centre to optimise yields and maximise cost efficiencies.”
Patented RotoGro Hydroponic Garden Systems supported by proprietary iGrow automated software.
These numbers increase further with the stackable design allowing for two or three Rotational Gardens to be stacked providing 800% and 1,200% increase in yield per square metre respectively.